Nova Design Build, Inc. v. Grace Hotels, LLC., No. 08 C 2855, 2008 WL 4450305 (N.D. Ill. Sep. 30, 2008) (Der-Yeghiayan, J.).
Judge Der-Yeghiayan denied defendants’ motion to dismiss plaintiffs’ copyright infringement and related state law claims. Plaintiffs claimed that they developed plans for a Holiday Inn Express hotel defendants planned to build, and that defendants infringed the copyrights in plaintiffs’ plans by revising them with another firm and using them without plaintiffs’ permission. The Court held that plaintiffs’ copyright claim was sufficiently pled. Plaintiffs alleged ownership of a copyright, attaching the copyright registration, and that defendants infringed the copyright. Defendants’ argument that plaintiffs’ plan were a derivative work were beyond the pleadings and, therefore, not appropriate for a Fed. R. Civ. P. 12(b)(6) motion.
Similarly, defendants’ argument that plaintiffs, as authors of a derivative work, lacked standing to bring their copyright suit also was beyond the scope of a Rule 12(b) motion to dismiss. Furthermore, it was not ripe for decision because defendants made the argument for the first time on reply.
The Court also held that defendants’ arguments as to plaintiffs’ state law claims were beyond the complaint and, therefore, not sufficient for a motion to dismiss.

Continue Reading Court Does Not Consider Facts Beyond Complaint in Rule 12(b) Motions

Aguila Records, Inc. v. Federico, No. 07 C 3993, Slip Op. (N.D. Ill. Oct. 10, 2007) (Der-Yeghiayan, J.).
Judge Der-Yeghiayan denied defendants’ Fed. R. Civ. P. 12(b)(6) motion to dismiss plaintiff’s Lanham Act, copyright infringement and breach of contract complaint. Plaintiff, a music management and recording agency, alleged that it entered into an oral agreement with individual defendant Sergio Federico (“Federico”), a musician, giving plaintiff exclusive rights to Federico’s and his musical group Alacranes Musical’s (“Alacranes”) recordings. Shortly after agreeing to a ten-year extension of the agreement, plaintiff alleged that Federico quit the Alacranes and joined defendant musical group Aliados de la Sierra (“Sierra”). Plaintiff claimed that defendants infringed its scorpion trademark by using scorpion logos in their promotional material. Plaintiff also alleged that defendants violated plaintiff’s copyright in the song “Por Tu Amor” – click here to watch the Alacranes’ music video on YouTube – by performing the song without authorization. Defendants argued that plaintiff failed to state its claims because several of plaintiff’s allegations were false, unsupported or otherwise incorrect. But the Court held that plaintiff had sufficiently pled its claims and that a Rule 12(b)(6) motion was not the appropriate vehicle for evaluating the strength of the evidence.

Continue Reading Court Does Not Weigh Evidence in a Motion to Dismiss

DeVore Family Partnership LLP v. McDougal Littell, No. 06 C 3484, 2006 WL 2861116 (N.D. Ill. Sept. 26, 2006) (Conlon, J.).

Judge Conlon refused to dismiss or strike plaintiff’s claim for defendants’ profits from sales of a textbook which allegedly included plaintiff’s copyrighted photograph.  Plaintiff alleged that it licensed defendants to include plaintiff’s photograph of the Himalaya Mountains in a run of no more than 40,000 textbooks, but that defendants made almost 1.5 million copies of the book.  Plaintiff sought, among other things, defendants’ profits from the allegedly infringing textbooks.Continue Reading Liberal Pleading Standards Preserve a Claim for Copyright Infringement Profits